HomeMy WebLinkAboutItem 4: Resolution 4918 Approving a Multiple-Unit Property Tax Exemption for Residential Property Located at Patterson Street (2)
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Action: Resolution 4918 Approving a Multiple-Unit Property Tax Exemption for Residential
Property Located at 1360 and 1372 Patterson Street, Eugene, Oregon (Robert V. Newland,
Applicant)
Meeting Date: October 8, 2007 Agenda Item Number: 4
Department: Planning and Development Staff Contact: Richie Weinman
www.eugene-or.gov Contact Telephone Number: 682-5533
ISSUE STATEMENT
City Council is asked to approve a resolution granting a Multi-Unit Property Tax Exemption (MUPTE) for
Patterson Place at 1360 and 1372 Patterson Street in Eugene.
BACKGROUND
The MUPTE program was created to encourage new housing in the core area. The council has a 30-year history
of supporting tax exemptions under this program, approving a total of 15 requests (Attachment C). Of these, the
tax exemption has expired on eleven of the developments. Ten are now taxed and one, Lawrence Court, changed
hands and is operated as public-purpose, tax-exempt, low-income housing.
In April 2004, the council amended the MUPTE program regulations and boundaries. The most significant
change to the regulations was to include more stringent quality standards for developments being considered for
the exemption.
Patterson Place is proposed to be built at 1360 and 1372 Patterson Street, a property which is zoned R-3 or high
th
density residential. It is located on the west side of Patterson, one-quarter block south of 13Avenue. There
are currently two deteriorated single-family dwellings on the property and one garage. Both homes are over 50
years old and neither have historical value. The property owner, Bob Newland, has stated his intention is to
upgrade the quality of this parcel and the neighborhood by constructing 14 new, high-quality housing units.
This proposal meets both state and local development goals and is recommended for approval.
Citizen Comments
The applicant met with the West University Neighbors on two occasions. On August 2, 2007, he reviewed the
project plans in detail and listened to their concerns. The West University Neighbors subsequently wrote a
letter indicating their unanimous support for this MUPTE application. They noted that Mr. Newland had
acknowledged the concerns of the neighborhood in his approach to parking, trees, open space, design, location
and scale.
A display ad was placed in the Register-Guard, seeking citizen comments. Over a 30-day period, no additional
comments were received.
Design Features
This application proposes housing that increases density in the core area using higher grade materials, as
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encouraged under the MUPTE guidelines. The applicant’s proposed housing involves three buildings and
features open courtyards, a secure bicycle parking room and vehicle parking under the housing units. The
development is being designed and built by the local firm of Anslow & Degeneault – a company with
significant experience with sustainable/green building practices. The project developer demonstrates a serious
commitment to sustainable practices and quality design.
The development will feature a variety of elements including the use of landscaped courtyards (featuring native
species), high efficiency-low emissive windows, traditional attic roof construction, and the use of products that
are produced from sustainable practices. This includes a commitment to use, when feasible, locally produced
products including: parallam, glulam, oriented stand board, as well as structural lumber and studs.
Impact and Need for Tax Exemptions to Encourage Housing
The City and other local taxing districts forgo some revenue when a development is exempt from taxes. The
land itself continues to be taxed during the exemption period. This project proposes new construction on a
property that has been underdeveloped based on the zoning. The improvements will bring increased revenue,
after ten years, beyond what is currently being collected. The property is currently taxed at $2,902 per year. Of
this, $651, for the land, will continue to be collected. The MUPTE exemption accounts for an estimated
$34,821 per year.
Timing
On October 22, the council will review the MUPTE program. This applicant initiated his process in the spring
and formally applied in August. He has been very concerned about the timing for financing and leasing
reasons. This agenda date was scheduled prior to the council request for a work session regarding MUPTE.
There is a legal timing requirement to provide the council with the report and recommendation within 90 days
of application. The council must act in 180 days or the application is considered approved. This October 8
meeting falls inside the first 90 days.
RELATED CITY POLICIES
MUPTE is enabled by state statute and the City of Eugene has participated in the program since 1978.
Encouraging housing in the core area and in West University is consistent with numerous adopted planning and
policy documents. Examples include:
Growth Management Policies
Policy 1 Support the existing Eugene Urban Growth Boundary by taking actions to increase density
and use on existing vacant land and under-used land within the boundary more efficiently.
Policy 2 Encourage in-fill, mixed-use, redevelopment, and higher density development.
Policy 3 Encourage a mix of businesses and residential uses downtown using incentives and zoning.
West University Refinement Plan
V.9 The City will encourage residential uses in all parts of the plan area.
V.11 The City and the neighborhood shall study ways to encourage a variety or mix of structure
types providing both owner and rental opportunities and appealing to a diverse population.
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COUNCIL OPTIONS
1. The council may approve the exemption.
2. The council may postpone action. The council can postpone action until after the council work session on
October 22 or to request additional information.
3. The council may deny the exemption.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends Option 2.
SUGGESTED MOTION
Move to consider this resolution on November 13, 2007, following the council discussion on MUPTE on
October 22, 2007.
ATTACHMENTS
A. Resolution approving a property tax exemption for Coho Townhouses
B. Report from the Planning and Development Director
C. History of granted multi unit tax exemptions in Eugene
D. Photo of the property currently
E. Images of proposed development
F. Comment letters
FOR MORE INFORMATION
Staff Contact: Richie Weinman
Telephone: 682-5533
Staff E-Mail: Richie.d.weinman@ci.eugene.or.us
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ATTACHMENT A
RESOLUTION NO. _____
A RESOLUTION APPROVING A MULTIPLE-UNIT PROPERTY TAX EXEMPTION
FOR RESIDENTIAL PROPERTY LOCATED AT 1360 AND 1372 PATTERSON
STREET, EUGENE, OREGON (ROBERT V. NEWLAND, APPLICANT).
The City Council of the City of Eugene finds that:
A.
Robert V. Newland is the owner of real property located at 1360 and 1372 Patterson Street, Eugene,
Oregon, more particularly described on the attached Exhibit A and has submitted an application pursuant to the
City’s Multiple-Unit Property Tax Exemption Program (Sections 2.945 and 2.947 of the Eugene Code, 1971),
with respect to residential units to be constructed on the property.
B.
A display ad soliciting recommendations or comments from the public was published in the Register-
Guard on August 19, 2007, and advised that written comments would be accepted for a period of 30 days from
the date of publication. Recommendations or comments were also solicited from the Planning Commission,
and other interested City departments, agencies, and neighborhood groups. No comments were received.
C.
The Report and Recommendation attached as Exhibit B, which was prepared by the Director of the
Planning and Development Department (“the Director”) as designee of the City Manager, recommends that the
application be approved and the exemption granted. In making the recommendation, the Director found that the
applicant submitted all materials, documents and fees required by the application and the City as set forth in
Section 2.945 of the Eugene Code, 1971, and is in compliance with the policies set forth in the Standards and
Guidelines adopted by Administrative Order No. 53-04-03-F.
D.
The project consists of the development of two two-bedroom units, six three-bedroom units, four four-
bedroom units, and two five-bedroom units, which are not designed for, nor will be used as, transient
accommodations.
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal
Corporation of the State of Oregon, as follows:
Section 1.
Based upon the above findings which are adopted, and the City Council’s review of the Report
and Recommendation of the Director of the Planning and Development Department attached as Exhibit B, the
City Council approves the application of Robert V. Newland for an ad valorem property tax exemption under
the City’s Multiple-Unit Property Tax Exemption Program for the residential units to be constructed at 1360
and 1372 Patterson Street, Eugene, Oregon, and more particularly described on the attached Exhibit A, subject
to the following conditions:
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1.
The project shall consist of two two-bedroom units, six three-bedroom units, four four-bedroom
units, and two five-bedroom units, which are not designed for, nor will be used as, transient
accommodations.
2.
The project shall be completed on or before January 1, 2012.
3.
The project shall include those public benefit design elements in the Standards and
Guidelines as described in Section 2.2 of the Report and Recommendation attached as Exhibit B.
4.
The project shall be in conformance with all local plans and planning regulations, including
special or district-wide plans developed and adopted pursuant to ORS Chapters 195, 196, 197, 215 and
227.
Section 2.
The residential units to be constructed upon the property described in Section 1 above are
declared exempt from local ad valorem property taxation beginning July 1 of the year following certification of
completion and continuing for a continuous period of ten years unless earlier terminated in accordance with the
provisions of Section 2.947 of the Eugene Code, 1971.
Section 3.
The City Manager, or the Manager’s designee, is requested to forward a copy of this Resolution
to the applicants, and to the other affected taxing districts, within ten days, and to cause a copy of this
Resolution to be filed with the Lane County Assessor on or before April 1, 2008.
Section 4.
This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted and effective the ____ day of _____________, 2007.
___________________________________
City Recorder
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ATTACHMENT B
REPORT AND RECOMMENDATION
of the
Director of the Planning & Development Department
Robert V. Newland
Multiple-Unit Property Tax Exemption
The Director of the Planning & Development Department of the City of Eugene finds that:
1.
Robert V. Newland is the owner of real property located at 1360 and 1372 Patterson Street, Eugene,
Oregon, more particularly described on the attached Exhibit A and has submitted an application pursuant to the
City’s Multiple-Unit Property Tax Exemption Program (Sections 2.945 and 2.947 of the Eugene Code, 1971),
with respect to residential units to be constructed on the property.
2.
I have reviewed the application and specifically find that the project to be constructed will result in an
eligible structure for the property tax exemption as defined in the Standards and Guidelines, will be located
within the downtown core area, the construction will be completed on or before January 1, 2012, and:
2.1 The applicant has submitted all materials, documents and fees required by the City;
2.2 Design elements that benefit the general public have been included in the project, which consist of:
2.2.1 Sustainability features. Sustainability features include:
•Location is ideal for commuting by walking or bicycling to the University,
Sacred Heart and to the commercial areas within a four block radius. The LTD Breeze
bus stop is ½ block away and the EmX bus stop is two blocks away from the property
eliminating the need to drive to most destinations.
•Higher density design with entries opening onto landscaped areas increases
green-space for occupants.
•Most of the maneuvering and parking area of the proposed development will be
under living units which will result in a reduction of the “heat island” effect created by a
concrete and asphalt parking lot with autos exposed to direct heating by the sun.
•Fluorescent lights will be used in the parking area which will be controlled by a
time clock and occupancy sensors. Exterior lights in common areas will be photocell
controlled to reduce energy use and enhance safety.
•Utilities will be metered to each unit to encourage individual conservation.
•High efficiency, low emissive coated windows in vinyl frames will be used to
provide minimum heat transfer and require no recurrent painting.
•Traditional attic roof construction allows gravity ventilation of heat build-up and
hip roof eaves shade south and west windows from midday sun, greatly reducing the need
for additional cooling. Glazing is designed to provide excellent day lighting; south and
west windows will provide solar insulation in winter months (summer high angle of
incidence results in reduced heat gain due to reflective nature of coating).
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•Construction waste will be minimized by the designer’s familiarity with standard
sizes and construction systems and approach to value engineering including routine
recycling many materials generated in the construction process.
•Recycling area for tenants will be conveniently located in a well lit, weather
protected area.
•Many of the construction materials will be engineered products produced from
sustainable forestry practices including the use of smaller diameter non-old growth trees
and include products manufactured in the local area resulting in less transportation of
materials from distant sources.
•Indoor air quality enhancement by use of cabinets, doors and interior trim pre-
finished offsite, as well as more operable window areas than required by code. All
exhaust fans will be provided with timers which will foster use of fans even when the
units are unoccupied, thus reducing moisture problems.
•Most units will have washers and dryers, reducing the need to transport laundry.
•The project site is underutilized (currently having two dwellings each with six
single occupant units which are approaching the end of their useable lifetime) and will be
replaced using building methods and materials that are more environmentally sustainable.
•Landscaping will be incorporated on all sides using plant materials chosen for
low water use and low maintenance as well as aesthetic considerations. Many native
species of plants will be used.
2.2.2 Responsiveness to adjacent historic structures. There are no adjacent historical structures. The
building currently on the site is over 50 years old, but according to City of Eugene Senior
Planner Ken Guzowski, is not a historic structure.
2.2.3 Use of higher quality materials that contribute to longevity. High quality 30-year plus rated roof
shingles will be used. Exterior siding will be Hardi brand cementinous siding which performs
well, is fire resistant and has a long service life. Vinyl windows will be used and are efficient
and require minimum maintenance. Vehicle parking will be concrete instead of asphalt,
reducing reliance on petroleum products. The building is anticipated to have at least a 100 year
service life.
2.2.4 Prominent entry facing the public street. The building will not incorporate a single prominent
entry. Instead, all units will have private entrances at grade level. Of the 14 front doors, four
face Patterson Street directly. Special attention has been paid to architectural presentation to
Patterson street.
2.2.5 Number of units by which minimum density is exceeded or which incorporate three or more
bedrooms to encourage families. Patterson Place will have 14 units on a site of 12,000 square
feet (.27 acres). This exceeds minimum density for the zone by approximately eight units.
Twelve of the units have three or more bedrooms making them more suitable for family use than
the current single occupancy units.
2.2.6 Number of available ADA accessible units. There are no ADA accessible units.
2.2.7 Responsiveness to neighborhood character and safety in respect to height, mass, architectural
detail, landscaping and open space. Composition has been arranged to achieve the density goals
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while limiting scale, particularly to Patterson Street and approaching pedestrians. Setbacks have
been exceeded and the roofs hipped. Exterior materials, hips, gables, entry porches, covered
balconies, residential style doors and windows provide resonance with the neighborhood’s
residential character. As the site across the alley is zoned C2, Patterson Place serves as a
transitional building responding to the greater density, mass and height in that zone. Parking
spaces will be in a well lit parking area. All units have private entry door at grade level in well
lit, highly visible locations, with two directions of approach. No entries face the alley. The
entire building is installed with fire sprinklers. Bicycle storage is in locked rooms. The density
achieved is 51 units per acre and, therefore, exceeds the incentive threshold of section 9.550(9)
of the Eugene Code, allowing exemption from the provision of open space on the site, however
the West University Park will provide ample open space nearby for tenants.
2.2.8 Number of units designed for home ownership. Patterson Place is not designed for individual
homeownership. All units are rentals.
2.2.9 Solicitation of comments from relevant neighborhood associations. The West University
Neighborhood Association has gone on record as supporting the Patterson Place project,
assuming that the design features are retained, but commented that they would like to see more
than 19 parking spaces for a 48-bedroom structure.
2.3 The project will be monitored through the City’s regular processes with respect to planning, permit
and building and safety requirements to insure compliance with all local regulations;
2.4 Currently on the site are two dwellings, each with single occupant units, and one garage; and
2.5 The owner has stated in the application and provided evidence that the project would not be feasible
with the quantity and quality of sustainability features planned without the tax exemption.
3.
A display ad soliciting recommendations or comments from the public regarding this project was
published in the Register-Guard on August 19, 2007. The period for comment expired on September 18,
2007. No comments were received.
Therefore,
based upon the above findings, the project is in conformance with all applicable local plans
and provisions of the Eugene Code, 1971, planning regulations, the Metropolitan Area General Plan, and the
criteria set forth in the City’s adopted Standards and Guidelines for Multiple-Unit Housing Property Tax
Exemption, and I recommend that the application be approved.
Dated this _____ day of _________________________, 2007.
_________________________________
Director, Planning & Development
Department, City of Eugene
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ATTACHMENT C
MULTI
-UNIT HOUSING PROPERTY TAX EXEMPTION PROGRAM HISTORY
NAMEADDRESSNUMBER OF UNITSAPPROVED
Broadway Center Washington and Broadway 107 units 1978
12 studio; 71 One-Bedroom; 24 Two-Bedroom;
12 Studio
Lawrence Court 8th and Lawrence 50 One-Bedroom 1980
(now all low-income) (approx)
Washington Abbey 10th and Washington 48 units 1984
9 One-Bedroom/plus loft; Five Two-Bedroom;
34 One-Bedroom
Olive Terrace 15th Ave. & Olive St. 28 units 1989
4 Studio; 12 One-Bedroom Units; 12 Two-
Bedroom Units
Joseph Shapitka 445 W. 10th Ave. 8 Two-Bedroom Units. 1990
Burnell Ambrose 17 & 35 Lawrence St. 7 One-Bedroom Units. 1995
Nozama Apartments 525 & 541 E. 19th Ave. 14 units 1995
12 Two-Bedroom Units; 2 Four-Bedroom Units.
Hilyard House
701 & 725 E. 14th Ave. 1357 53 units 1995
& 1377 Hilyard 44 Two-Bedroom Units; 9 One-Bedroom Units.
Art Carmichael
Paradice Apts 640 E. 15th Avenue 30 units 1996
Phil Klingensmith/ 6 Studio; 8 One-Bedroom Units;
Don McRae 16 Two-Bedroom Units.
High Street Terrace 10th Ave. & High St. 58 units 1996
20 Studio; 26 One-Bedroom Units; 12 Two-
Bedroom Units
Broadway Place Broadway and Charnelton 170 units 1996
74 Studio, 72 One-Bedroom, 24 Two Bedroom
The Tate 1375 Olive 47 units – condominiums 2004
14 one-bedroom, 27 two-bedroom, 6 three-
bedroom
Patterson House 979 Patterson 27 units 2004
3 studio, 12 0ne-bedroom, 12 two-bedroom
th
Parkside Place 633 E. 14 Alleyway 21 units 2006
1 one-bedroom, 2 two-bedroom, 5 three-
bedroom, 7 four-bedroom, 6 five-bedroom
2007
th
Coho Townhouses 631 E. 14 Ave. 9 four-bedroom units Under
construction
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PENDING REQUESTS
NAME ADDRESS NUMBER OF STATUS COUNCIL
UNITS ACTION
Patterson Place 1360,1372 14 rental Submitted Aug 13 October 8, 2007
- Robert V. Newland Patterson Comment period
ends Sept 19, 2007
Steelhead Townhouses 534,535 E. 9 rental Submitted Aug 28 TBD
- Dan Neal 14th Comment period
ends October 1
Eugene Downtown 990 Lincoln 24 ownership Submitted Aug 20 TBD
Cohousing 7 rental (tentative) Comment period
- Martin Henner ends October 1
ththth
16 and Hilyard 693 E. 16 10 rental Submitted Aug 7TBD
Apartments Advertised Sept 16
-David S. Corey Comment period
ends October 15
Additional Downtown Housing Tax Exemptions (not MUPTE)
Lincoln School 58 units Historic Exemption (15 years)
Tiffany Building 28 units Historic Exemption (15 years)
Aurora Building 54 units Low-income Exemption (20 years)
th
WestTown on 8 (under construction) 102 units Low-Income Exemption (20 years)
Updated: September 24, 2007
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ATTACHMENT D
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ATTACHMENT E
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ATTACHMENT F
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